Edgewater staff recommends holding millage at 6.33 as council reviews FY26 budget

Finance Director Bridget Bass told the City of Edgewater council on July 8 that staff is recommending the operating millage remain at its current rate of 6.33 for fiscal year 2026 and outlined revenue, staffing and capital plans for the coming year. "We're recommending holding that millage rate flat," Bass said, while cautioning that rising taxable values mean holding the rate can still increase individual tax bills.

Bass said estimated ad valorem revenue for the general fund is $13,396,265 and that ad valorem taxes make up roughly 46% of recurring general-fund revenue. Staff reported a preliminary taxable-value increase of about 12.35 from the property appraiser and said the proposed budget assumes a 3.8% overall increase in total revenues for FY26, including approximately $2,000,000 in developer inspection payments and $2,000,000 planned use of fund balance to balance the budget.

On homeowner impacts, Bass presented sample calculations showing one example property (assessed at $145,906 with homestead exemptions) would see an overall tax-bill increase of about $64 year-over-year, with Edgewater’s share roughly $19. "We like to provide each year a couple of sample homes so that you can get an idea of the impact to a couple of our residents," she said.

Staff recommended holding the fire assessment flat at $50 per residence, estimating about $634,000 in revenue from that assessment. Bass also reviewed special revenue and impact-fee balances: transportation impact fees (~$2.8 million) identified for several road projects (including Parktown Road and Airpark Road), police impact fees (~$920,000), recreation impact fees (~$719,000), and a CRA balance (~$641,871) earmarked to support stormwater work.

On personnel and compensation, the proposed budget includes a 6% wage increase across existing staff and higher benefit cost assumptions (estimated +15% for health and +10% for dental). Staff recommended converting the public information officer from contract to in-house, noting a net budget increase of about $45,000 after offsetting contract reductions; Bass said wages-only for the PIO position were budgeted at about $63,000, with the total position burden (wages and benefits) about $96,000. The proposal also includes a deputy city clerk (budgeted as $80,000 total burden), an accountant, three police officers, a police sergeant and three firefighter driver-engineers, with total proposed staff additions of $978,969.

Capital requests in the general fund include police K9 SUVs, code and streets pickups, and other vehicles (total general-fund capital requests around $298,000). Paving projects were proposed at $1,000,000 for the next fiscal year (staff noted an earlier study had recommended $1.8 million annually). Parks improvements, sidewalk projects (including an Airpark Road sidewalk with grant match), and IT and fleet funding needs were also described.

Bass emphasized reserves and cash-flow planning. She reported an unassigned fund balance of $13,662,849 as of Sept. 30, 2024, a charter-reserve minimum of roughly $3.8 million, and proposed set-asides including $300,000 for a fire truck and $2,000,000 to cash-flow major grants; after planned uses, staff estimated a remaining unassigned balance around $279,731.

Key upcoming dates Bass listed: July 21 to set the maximum millage to advertise on the TRIM notice and consider the initial fire-assessment resolution; July 22 for the enterprise-fund workshop; Aug. 18 for the utility-rate resolution; Aug. 11 tentative budget workshop; and public hearings on Sept. 8 and Sept. 22, when final action is expected. Bass said the working budget will be finalized by September.

No formal votes or motions were taken at the July 8 workshop; staff said formal millage-setting and rate resolutions will be on future agendas for council action.